VELESTO ENERGY BERHAD
Malaysia | 5243.KL | Main
Reference
Report Year: 2023
Source Files: Velesto_IAR2023_-_Part_01.pdf, Velesto_IAR2023_-_Part_02.pdf, Velesto_IAR2023_-_Part_03.pdf, Velesto_IAR2023_-_Part_04.pdf
Sustainability Committee
Sustainability Committee (Unknown pax) 🟢
- SMC oversees ESG 🟢
- BRMC reviews risks 🟢
Reporting
GRI, TCFD, Integrated Report 🟢
GHG Accounting
Velesto Energy Berhad demonstrates a structured approach to GHG accounting with detailed reporting of Scope 1 (63,469 tCO₂e) and Scope 2 (477 tCO₂e) emissions for 2023, alongside limited Scope 3 data (67 tCO₂e for travel and commuting). Strengths include quantifiable emission intensity reductions (28% per operating day and 63% per revenue since base year) and alignment with TCFD for climate risk disclosure. However, the absence of third-party verification and incomplete Scope 3 coverage are notable gaps. The company lacks clarity on GWP basis and standards used. Improvement is needed in expanding Scope 3 inventory and obtaining external assurance to enhance credibility.
Emissions
| Scope | Value | Note |
|---|---|---|
| Scope1 | 63,469 tCO₂e 🟢 | |
| Scope2 | 477 tCO₂e 🟢 | |
| Scope3 | 67 tCO₂e 🟢 | Limited to business travel and commuting ⚠️ |
| Biogenic emissions | Not applicable → | No biomass or biofuel usage reported. |
Other Details
- Base year: Not specified
- Boundary inventory: Operational control (Malaysia operations)
- Gwp basis: Not specified
- Standard: Not specified
- Data collection approach: Internal data collection templates introduced in 2023
- Third party verification: No
- Carbon intensity: 34 tCO₂e/day, 53 tCO₂e/RM mil, not verified ⚠️
Efforts
- 28% reduction/day 🟢
- 63% reduction/revenue 🟢
- Net Zero 2050 target 🌞
- 2.2% water intensity reduction 🟢
Social Highlights
- 401 employees trained 🥗
- RM 55,000 community investment 🥗
- 256 volunteer hours 🥗
- 70% local supplier spend 🥗
- Limited data available ⚠️
Governance
- Salary disclosure: Disclosed for Directors 🟢
- Litigation: Corruption case, 2023 🔴
Report Quality
Commendable progress in Velesto's 2023 sustainability reporting, with quantifiable metrics such as a 28% reduction in emission intensity per operating day and 63% per revenue 🟢. The integrated report aligns with GRI and TCFD frameworks, showcasing a strong governance structure via the Sustainability Management Committee. Forward-looking commitments like Net Zero by 2050 are promising 🟢. However, the report lacks third-party verification and comprehensive Scope 3 emission data, limiting credibility ⚠️. Some sections rely on generic statements (e.g., 'committed to sustainability') without detailed outcomes. Velesto could improve by incorporating external assurance, expanding Scope 3 reporting, and providing deeper measurable impacts for social initiatives. Overall, a solid foundation exists, but enhanced specificity and validation would elevate its standing.
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